The latest retail sales figures from the Office for National Statistics (ONS) show a 0.3% decline in December, with food store sales volumes falling 1.9%.
The “very poor month for food sales” saw numbers sink to their lowest level since 2013, with supermarkets particularly affected.
“It was a better month for clothing shops and household goods stores, where retailers reported strong Christmas trading,” noted Hannah Finselbach, ONS senior statistician.
Clothing and footwear retailers saw a 4.4% jump in December, with department stores also benefitting from the Christmas preparations.
Online spending also increased by 1.5% during December 2024, the first monthly rise since September 2024.
Kris Hamer, director of insight at the British Retail Consortium, welcomed the retail sales growth but stressed this “did not offset the shaky start to the ‘Golden Quarter’’.
“Electricals, beauty and books made for popular presents. Meanwhile, sales of furniture and other large ticket items were hard hit as families continued to think twice before making larger purchases, and clothing and footwear sales remained muted,” he added.
“While retailers welcome this boost to sales, it will barely touch the sides of the £7bn in new costs from the Budget facing the industry in 2025. Higher employer national insurance contributions, higher National Living Wage, and a new packaging levy will heap pressure on an industry that is already paying more than its fair share of tax. With retailers doing all they can to absorb existing costs, two thirds of CFOs report they are left with little choice but to increase prices, and reduce investment in jobs and shops. To mitigate this, Government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”
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